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Vehicle Telematics Market

Analysis by Service Type (Information & Navigation, Safety & Security, Insurance Telematics, and Infotainment System); by Vehicle Type (Passenger Cars, and Commercial Vehicles); by Technology (Embedded, Tethered, and Integrated); and by Sales Channel (OEM, and Aftermarket) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Report ID: 4462 | Published On: Feb 13, 2023
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Global Vehicle Telematics Market Size, Forecast, and Trend Highlights Over 2023 - 2033

The global vehicle telematics market is estimated to garner a revenue of ~ USD 215,000 Million by the end of 2033 by growing at a CAGR of ~18% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~ USD 75,000 Million in the year 2022. The market is primarily driven by higher count of connected cars along with expansion of automotive sector and high demand of vehicles by the population.  In 2021, there were nearly 237 million connected cars worldwide, and the count is expected to reach approximately 400 million by 2025.

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The increasing requirement of semiconductor chips owing to its prolonged shortage due to lockdown imposed by pandemic, it is to accelerate its growth of semiconductor companies. In 2021, more than 1 trillion semiconductors were sold in 2021. In addition, telematics helps drivers to reduce consumption of fuel by tracking their unused time and increasing their efficiency. Alarming need to reduce fuel usage and rising requirement for safety assistance in the automobile is to boost the growth of vehicle telematics market.

Global Vehicle Telematics Market: Growth Drivers and Challenges

Growth Drivers

  • Need to Minimize the Fuel Consumption - With the rising prices and shortage of fuel, the government is focusing on minimize its usage. Also, the high production of vehicles is expected to increase the demand of fuel which is generating an insufficiency for everyone, which in turn, is expected to bring lucrative growth opportunities. In 2020, the demand of fuel from transportation sector of both OECD and non-OECD regions was equal. Moreover, by 2040, the fuel demand in non-OECD region is likely to increase twice, from about 47 quadrillion btu (British thermal units) in 2012 to 94 quadrillion btu.

  • Rising Popularity of Movement and Location Tracking Feature - Location tracking is useful to protect the vehicle from dangers and facilitates to contact for assistance in emergency circumstances. Currently, nearly 98% of cars is likely to have location tracking technology in next few years and there are around 78 million cars on road, embedded with tracking technology.

  • Increase in Demand for Semiconductor Chips and its Production - There had been the shortage of semiconductor chips in past few years, which has increased its demand across the market. The global sale of semiconductor reached almost half a trillion dollars in 2021.

  • Soaring Need for Automobiles with Advanced Safety Features - Owing to rising cases of accidents, the need of advanced safety feature is growing and turned out to be of significant importance. In the United States, around 45% wish to have blind spot warning system and about 51% expect to have backup warning from the vehicle.

  • Increasing Number of Automobiles with Connectivity Solution - Nowadays, with the rising prevalence in IoT and 5g adoption, people expect their car to perform all the functions similar to their computers and mobile phone which is making connectivity solution the need of an hour. By 2030, more than 2 billion connected cars are expected to exist worldwide.

 Challenges

  • Risk of Data Theft Associated with Telematics’ Data - The telematics system contains huge volume of sensitive data which is vulnerable to risk. The complexity of the telematics system leaves a space for an error in cybersecurity. The breach of network might happen during the transfer between the telematics sensors. Thus, security concerns involved in vehicle telematics system is expected to hinder the market growth.
  • Exorbitant Cost of Installation for Getting Connectivity Feature
  • Difficult in Interoperability in Devices Produced by Different Manufacturers

The global vehicle telematics market is segmented and analyzed for demand and supply by vehicle type into passenger car and commercial vehicle. The passenger car segment is expected to hold the largest market size by the end of 2033. The growth is expected on the account of rising need of passenger car which is prompting the sales of passenger cars. The burgeoning population is demanding passenger cars for fulfilling their needs which is projected in increase the production rate of passenger cars. In 2020, globally, around 65 million passenger cars were sold. Furthermore, boosted sales of electric passenger car is to propel the growth of the segment. Globally, there were around 16 million electric cars on road in 2021. In the first quarter of 2022, nearly 2 million electric passenger cars were sold.


Global-Vehicle-Telematics-Market-overview
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Global Vehicle Telematics Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

~18%

Base Year Market Size (2022)

~ USD 75,000 Million

Forecast Year Market Size (2033)

~ USD 215,000 Million

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)


Global Vehicle Telematics Market Regional Synopsis

The North America vehicle telematics market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. Rising instances of fatalities caused by vehicle accident and high rate of frequent traffic congestion is expected to prompt the demand of safety feature in the automobiles. In 2021, nearly 43,000 people died in vehicle traffic crashes. Furthermore, the increased production of semiconductor in North America owing to its higher demand along with the expansion of automotive sector and presence of key players is projected to boost the market growth in the region. Average demand for semiconductor chips rose by nearly 17% in 2021 than 2019 and semiconductor production was increased by approximately 90% in 2021. Further, the higher usage of fuel by vehicles in United States is focusing to increase the need to reduce fuel consumption which in turn is expected to fuel the market growth of vehicle telematics.  In 2020, nearly 40% of U.S. oil was consumed by light –duty vehicles.

Global-Vehicle-Telematics-Market-share


Market Segmentation

Our in-depth analysis of the global vehicle telematics market includes the following segments:

      By Service Type

  • Information & Navigation
  • Safety & Security
  • Insurance Telematics
  • Infotainment System

      By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

      By Technology

  • Embedded
  • Tethered
  • Integrated

      By Sales Channel

  • OEM
  • Aftermarket


Global-Vehicle-Telematics-Market-share
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Top Featured Companies Dominating the Global Vehicle Telematics Market

    • Bosch Global Software Technologies

      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Bridgestone Mobility Solutions B.V.
    • Trimble
    • Octo Group S.p.A.
    • Verizon
    • MiX Telematics
    • Zonar Systems
    • Harman International
    • Microlise Limited
    • On Star Corporation
    • Qualcomm Technologies, Inc.

In The News

  • April 2022: IBSRELA the first and only NHE3 inhibitor for the treatment of irritable bowel syndrome with constipation (IBS-C) in adults, has been made available by the biopharmaceutical company Ardelyx. The first Ardelyx product to receive approval from the US Food and Drug Administration is IBSRELA.
  • March 2022: Indegene a provider of technology-driven healthcare solutions, & meta Me Health, a maker of Regulora and a Prescription Digital Therapeutics (PDT) business, teamed up to offer Regulora as a remedy for irritable bowel syndrome-related stomach pain (IBS).

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the vehicle telematics market?

Ans: Rising need to reduce fuel utilization, need for safety features, growing demand of semiconductors and more connected vehicles on roads are few factors expected to propel the market growth.

2) What would be the CAGR of vehicle telematics market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~18% over the forecast period, i.e., 2023 – 2033.

3) What are the challenges affecting the vehicle telematics market growth?

Ans: Higher installation cost of connectivity in vehicles, security threat to data on vehicle telematics system and interoperability struggle between the telematics system from different manufacturers are few challenge faced by the market

4) Which region will provide more business opportunities for growth of vehicle telematics market in future?

Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

5) Who are the major players dominating the vehicle telematics market?

Ans: The major players in the market are Bosch Global Software Technologies, Bridgestone Mobility Solutions B.V., Trimble, Octo Group S.p.A., Verizon, MiX Telematics, Zonar Systems, Harman International, Microlise Limited, On Star Corporation, Qualcomm Technologies, Inc., and others.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the vehicle telematics market?

Ans: The market is segmented by service type, vehicle type, technology, sales channel, and by region.

8) Which segment captures the largest market size in vehicle type in the vehicle telematics market?

Ans: The passenger car segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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